Hermes International Swot Analysis

Hermes International Swot Analysis – Swot Analysis of Hermes International: Hermes International is a French luxury fashion products manufacturer that has consistently been placed on the list of the most expensive luxury brands and has earned the status of an iconic brand within the realm of high-end luxury. The band is comprised of exceptional craftsmanship and rich history, as well as exceptional quality, professionalism, and high-end quality. The logo features an image of a Duc carriage and horses and has remained in use since the 1950s. The logo represents elegance and class across the globe.

Hermes International is a family-owned company for five generations. It is now well-known for its leather products. In the present, every twenty seconds Hermes offers one scarf of silk. The Birkin bag, which is Hermes’ exclusive bag comes with the longest waiting time and is said to be close to six years.

Hermes International fun facts: In 2011, more than 50 descendants of Thierry Hermès pooled their shares into a co-operative called H51, which was valued at USD 16 billion. 

About Hermes International – SWOT analysis of Hermes International

SWOT analysis of Hermes International

[wp-svg-icons icon=”office” wrap=”I”] Company: H51 SAS

[wp-svg-icons icon=”user” wrap=”I”] CEO: Axel Dumas

[wp-svg-icons icon=”user” wrap=”I”] Founder: Thierry Hermès

[wp-svg-icons icon=”calendar” wrap=”I”] Year founded: 1837, Paris, France

[wp-svg-icons icon=”location-2″ wrap=”I”] Headquarters: Paris, France

[wp-svg-icons icon=”stats” wrap=”I”] Annual Revenue: EURO€1.1 Billion

[wp-svg-icons icon=”bars” wrap=”i”] Profit | Net income: EURO€1,174 Million

[wp-svg-icons icon=”users” wrap=”I”] Number of employees: 16,437

[wp-svg-icons icon=”pie” wrap=”i”] Products & Services: Leather goods | Lifestyle accessories | Furniture | Fragrances | Watches | Jewelry | Ready-to-wear | Saddlery

[wp-svg-icons icon=”globe” wrap=”I”] Website:

Hermes International Competitors

[wp-svg-icons icon=”pacman” wrap=”I”] Competitors: Chanel | Christian Dior | Burberry | Ralph Lauren | Prada | Zara | Louis Vuitton | Hugo Boss | Tiffany & Co. | Pandora | Balenciaga | Versace | Dolce & Gabbana | GAP

SWOT analysis of Hermes InternationalHermes International SWOT analysis

SWOT analysis of Hermes International

SWOT Analysis Of Hermes International is brand-based. SWOT Analysis of Hermes International evaluates the brand’s strengths, weaknesses, opportunities, and threats. Advantages and disadvantages can be attributed to internal factors while opportunities and threats can be attributed to external factors. We will be discussing Hermes International’s SWOT Analysis. Below is the detailed SWOT Analysis of Hermes International.

Let’s talk about Hermes International’s SWOT assessment.

Strengths of Hermes InternationalHermes International SWOT analysis

1) A strong image of the brand :

For women, the top of having a luxurious item is Hermes Birkin bags, which are expensive, ranging from $12,000 up to $200,000. According to the world-renowned company that evaluates brands, Interbrand, Hermes is listed on the 32 spots on the list of Best Global Brands. The variety of items under Hermes’ name includes leather products, lifestyle, perfumes, and ready-to-wear.

The company has succeeded in ensuring its brand is distinct and valuable through a long heritage, exceptional quality, and exceptional craftsmanship. Hermes has a distinct aesthetic and is considered to be the most creative of the high-end fashion houses.

2) Global presence:

Hermes is a brand that is global with 307 stores across the globe and its flagship store located on Madison Avenue. The stores are in the U.S, Russia, Asia, and Europe and employ more than 13,000 employees. As of the year 2018, it has revenue of more than USD seven billion, and a profit of more than 2.5 billion. The brand has a long tradition of over 181 years. it is due to its desire for creativity and strategic consistency across the world market and a constant effort to create the long-term rather than the quick-term.

3) The wide product selection :

The company’s merchandise is available in a variety of categories, including women’s and men’s wear furniture and furniture, jewelry leather and saddlery wallpaper, tableware watches, fragrances, and petit. This approach of the business to diversify its industries has created a robust brand presence. The brand’s strategy is uniform across all of the categories of products and the categories it’s expanded.

4.) The brand strategies :

Hermes does not support celebrities’ endorsements to build its image as a brand and has been adamant about this kind of marketing. Only A-listed celebrities and extremely wealthy individuals have access to their most exclusive and exclusive products. Hermes doesn’t launch regionally specific collections or products, all their products are uniform throughout the world, making them appear consistent. The company also doesn’t offer products for sale or discounts.

Weaknesses of Hermes InternationalSWOT Analysis Of Hermes International

1) Competition:

Louis Vuitton who is Hermes’s main rival Hermes has focused on its history and as a travel-related brand, It has been able to keep customers. LV has a high price for its bags and has strict control over the people who can offer the bags. Chanel also is expanding its sales by offering classic quilted cosmetics bags, fragrances, and bags. Other rivals comprise Christian Dior, Prada, Burberry, Hugo Boss, etc. Fashion companies that are fast such as ZARA, and H&M have also been gaining market share. Hermes must continuously evolve and differ its products in order to be able to claim the upper hand in the luxury market

2) Imitation:

It is now simpler for designers to create fake goods more precisely and faster than ever before because detailed images of products are uploaded within minutes of their launch. Then, in New York itself, the federal government confiscated half-billion dollars of counterfeit luxury items. One method Hermes could combat counterfeit products is by using on-demand manufacturing. Designs are produced by machines that produce a specific quantity of units that are made using blockchain technology.

Opportunities of Hermes International – Hermes International SWOT analysis

1) Global expansion

Global expansion is an essential plan for Hermes to combat the seasonal declines in some areas, the larger economic demand fluctuations, and changing consumer preferences. Hermes ‘ products such as perfumes and jewelry are growing in volume and sales and contributing to the earnings of the business, but they are not yet at the same level as successful leather and saddlery divisions. The exclusivity-marketing model of Hermes could be a challenge in the global expansion of the various product ranges.

2) Enhance branding credibility :

Hermes is renowned for its expertise in the realm of silk and luxury leather items. While Hermes has expanded its product offerings into different categories, the equity of these items isn’t as identical to those of silk and leather. The watches are on an unsteady growth path and in the year 2016, the watches contributed only three percent of the brand’s 5.2 billion revenues. Hermes has to build the credibility of its diverse product lines.

Threats of Hermes International – SWOT analysis of Hermes International

1) Brand Takeover:

LVMH has a stake of 22.3 percent of Hermes and will do whatever it can to stop the share percentage from growing. LVMH purchased a massive stake in Hermes in 2010, and since then, the company has been worried about a threat of a hostile acquisition from LVMH. Hermes believes that this is more of a “cultural battle” than a financial one. To avoid an acquisition Hermes has set up an independent family holding company that holds 50% of the shares, which shields the company from LVMH.

2) Economic instability:

The consequences of the protectionist policies taken by the world’s top economies have had a dampening effect but the brand is good as global trade is actually increasing by five percent. The case of trade is heavily dependent on the capacity of nations to stand up to the uncertainty and global liquidity fluctuations that are a result of those in the United States. The head of the brand’s economics, however, warned that if the current situation continues the company could be faced with the risk of payment across the world.

You May Also Like:

Overview Template of Hermes International SWOT analysis

SWOT analysis of Hermes International


Hermès is one of the oldest and most prestigious brands, which has a market franchise with experience of more than 150 years. Also, it has been using different kinds of marketing strategies to gain brand awareness and to get global reach to the customer. 

They have been having many showrooms for centuries and now launching digital stores and pop-up stores to make its brand more accessible, it has also been focusing on its digital marketing strategy for better brand visibility and brand awareness.

This is the SWOT analysis of Hermes International. Please let us know if you have additional suggestions to add.

[wp-svg-icons icon=”bubbles” wrap=”i”] Let us know What do you think? Did you find the article interesting?

Write about your experiences and thoughts in the comments below.